For most of us, our home is our most valuable investment and one that we expect to grow in value over time. However, unlike many investments your piece of real estate will require love and attention to ensure that it becomes more valuable as it ages. In this blog post we’ll share some advice on how to grow your home equity over time, ensuring that you see a positive return on your investment when you decide to sell.
Get That Mortgage Paid Off!
The amount of home equity you have is directly tied to the amount of the property that you actually own – so if you’re still paying off a mortgage, this is an excellent plate to start. If you’re still chipping away at a large amount by making monthly payments, try to add in an additional payment or two each year which will help to pay down the principal. Also, look to large lump sums like an inheritance or tax return as a means to pay off a significant chunk of the remainder. While it may require a bit of budgeting and financial wizardry, paying down your mortgage faster can save you a ton in interest and will increase your equity.
Invest in Upgrades and Renovations
Aside from paying off your mortgage, the next best way to increase the value of your real estate is by completing value-adding renovations and upgrades. Prospective buyers tend to be drawn to areas like the kitchen and bathrooms, so investing in modern appliances and fixtures can help to bring the value of your home up. External additions like a heated garage can also boost your home’s value as it provides extra space that most families can make use of. Keep in mind that some renovations add very little in real value, and can actually subtract from the value of your home if a future buyer determines that they will need to ‘un-renovate’ after they move in.
Keep Your Home in Tip-Top Shape
As you already know, as your home begins to age things will start to wear out. Your home must be maintained for its value to increase, so ensure that all necessary repairs and maintenance are completed promptly. It’s also a good idea to have your roof and other structural elements inspected every few years to ensure they are good shape. When you sell your home your prospective buyers will have it inspected numerous times, so you’ll want to ensure that there are no surprises which can cause you headaches during any negotiations.
Unlocking Your Equity when You Sell
Of course, all of the above tips won’t be of much use to you if you can’t unlock your added home equity when you sell. For this reason it’s critical that you work with a professional real estate sales team who has experience selling homes here in Anchorage and the surrounding area.
If you’re thinking of selling, contact RMG Real Estate Experts at 907-562-INFO for a free home evaluation, and we’ll share how our approach to real estate marketing will ensure that you receive top dollar for home and property when you sell. Thanks for visiting and we look forward to working with you!